- The timeline and costs could increase if requirements are expanded during implementation. Strict change control is needed. - Lack of internal IT expertise increases dependency on consultants and risk of scope creep. External support should be limited. - Deploying the full system at once poses high risk of failure. A phased, modular approach is safer. - Changing leadership or resistance to change could undermine benefits. Early buy-in and training are important.

1. CASE STUDY: THE SAN DIEGO CITY SCHOOLS-ERP ROI
By
Group 5
Indian Institute of Technology Bombay

2. Total hard cost savings=$3316709
Total projected incremental yearly cost=$1820000
Answer-1
ROI for San Diago ERP System
(3316709-1820000)
-------------------------------
1820000
ROI =
(Total hard cost savings-Total projected incremental yearly cost)
------------------------------------------------------------------------------------------
Total projected incremental yearly cost
0.82
=
=

3. Answer-1
Total hard cost savings
(with productivity improvements Exhb 10)= $6,397,834
Soft benefits (salary + audit team)= $(320000+400,000) = $720,000
Total cost savings= $(6,397,834 + 720,000) =7117834
Discounting total saving @5.4% = $ 31,947,552
Total projected incremental yearly cost=$1820000 +15868000
ROI = (31,947,552 – 17,688,000)/17688000
= 0.8
ROI based on cost savings, efficiency improvements & soft benefits

4. Answer 2:
With the information you have access to, what should
Wiemann present and recommend at the board meeting?
Specifically, would you recommend going forward with
the HR system implementation?
If not, what alternatives would you suggest?

5. This case focuses on the challenge of quantifying the return on investment (ROI)
of a large technology project in the nonprofit environment of the San Diego City
Schools.
The system ROI is composed of two major components: Cost savings and
Productivity improvements
The cost saving benefits are relatively straightforward to quantify, but do not
justify the system.
Productivity improvements are harder to quantify and many can be categorized
as soft benefits.
Answer 2:

6.  Hence, Jeff Wiemann should recommend to implement the HR module of the ERP solution
with the benefits and the Return on Investment associated with it.
 He should try to convince the board members by telling them the benefits of the module:
• Employee benefits process could be automated.
• The payroll division had several categories & was handling more than 28 different forms
to process various pay actions.
• Personnel section of the HR division were also complex. By the implementation of ERP
software these processes can also be simplified.
• Users were satisfied with the new system
• Old laborious paper method replaced with faster, more reliable electronic version
Answer 2:

7. • Staff members able to achieve immediate results
• More productive, more accurate in their work
• Less bogged down by paperwork
• School district able to slim down workforce
• Employees were more productive with new system in place, resulting in additional savings
on payroll
• Saved money by automating processes on the system instead of using the old paper
process
Answer 2:

8. Answer 2: Alternative
 Only upgrade the payroll process instead of implementing a full HR module by installing an
electronic sign in system. This will help in maintaining the database more efficiently.
 Implementation to be done on pilot basis on few parts of schools. It is also risky but but at
the same time better then implementing it through out the school and create a bad
impression in the case of any failure.
He may choose to do away with the implementation of the HR module. With alternatives, he
may achieve some improvement in efficiency with a smaller upfront cost, but they are less
effective in the long term because of the lack of a central database and increased chance of
resistance.

9. Answer 3:
What are the risks associated with the project?
Would you advise the school board of these risks?

10.  The timeline and costs of implementation could be increased if the district allowed requirements to be
expanded over the course of implementation.
 Lack of technical expertise in the education department. Lack of native IT expertise. Dependency on
consultants.
 Scope creep: It refers to expanding the requirements of the ERP system over the course of
implementation.
 Deploying full system at one time increases the risk of project failure.
 Changing leaderships & Organizational Change
 Software modification (Increases cost of implementation, technical support, upgrades)
 Negotiations (Increased costs for software & Decreased benefits in service contracts with the solution
provider)
 Low level of satisfaction & School board is divided
Answer 3:

11. Answer 3: Risk Mitigation
The deployment should be done in phases to avoid the risk of the complete project failure.
Provide trainings to the existing employees through some IT consultants who will provide them
with the required software.
Leadership shall not change frequently.